Uniswap burns 100M UNI ($591M) to create deflationary fee-to-burn loop — UNI price jumps, could target $7.2

Uniswap’s governance executed the UNIfication proposal, burning 100 million UNI (~$591M) from the treasury and enabling ongoing protocol-fee-funded burns. The action cut treasury holdings from ~$2.1B to ~$1.6B and reduced circulating supply by ~15%. Protocol fee flows were activated for Uniswap v2 and select v3 pools (tiered v3 share ~16–25% per tier; v2 ~0.05%), with Unichain sequencer proceeds also routed into the burn mechanism after layer costs. The proposal passed with overwhelming community support (~99.9%). Market reaction was immediate: UNI spiked ~5% intraday to a local high near $6.40 before settling around $6.30, 24h volume rose ~52% to about $297M, and market cap hit a monthly high near $4.6B. On-chain indicators showed increased accumulation and positive Netflow, while short-term technicals (20/50 MAs and the Stochastic Momentum Index) flipped bullish. Analysts suggest continued buying could push UNI through $6.4 to $6.6 and toward $7.2; failure to sustain demand could see a retrace to ~$5.7. For traders: key drivers are (1) substantial one-time supply cut (100M UNI) plus an activated revenue-to-burn loop that can apply sustained deflationary pressure depending on protocol volume; (2) short-term momentum and whale accumulation that have supported the recent price lift; and (3) monitor fee revenue, burn cadence, LP behaviour, on-chain flows and governance actions for ongoing volatility. Primary keywords: Uniswap, UNI burn, deflationary loop, protocol fees, token burn.